Store Closures Surge In MI: See List Of Retailers Shutting Doors
Retail data provider CoreSight noted a 24 percent increase in store closures over last year. Here's what to know in Michigan. Retail data provider CoreSight has reported a 24 percent increase in store closures over the previous year, largely due to a shift in consumer shopping to online outlets, inflation, and bankruptcies. Retailers such as Macy's, Rite Aid, and Rue21 have all closed their stores, with some focusing on underperforming locations. The closures also include clothing retailer Rue21, which announced in May it would close all 543 of its stores as part of its Chapter 11 bankruptcy proceedings. Consumer confidence may be declining, according to the University of Michigan's Surveys of Consumer sentiment. Jeffrey Roach, LPL Financial’s chief economist, said uncertainty about inflation could suppress consumer spending in the coming months. However, off-price conglomerates like TJK could benefit from the closure of 150 underperforming Macy's stores.
Publicados : 10 meses atrás por Dylan Siwicki no Business
MICHIGAN — Some 3,200 brick-and-mortar stores, including many in Michigan, have closed so far this year, and more are expected to close through the remainder of the year, according to a new analysis.
Retail data provider CoreSight noted a 24 percent increase in store closures over last year as the retail industry adjusts to a shift in consumer shopping to online outlets, inflation and bankruptcies. The 30 stores closing some or all of their locations range from anchor stores such as Macy’s and other mall apparel stores to drugstores and discount stores selling items for around $1.
“A lot of this year's closures are related to bankruptcies of chains that have been in trouble for a while, like Rite Aid and Rue21,” Neil Saunders, managing director of GlobalData, told CBS MoneyWatch. “We’re also seeing several retailers, like Family Dollar, take action to weed out underperforming locations.” Family Dollar led the retail reshuffling by closing 620 stores. A list of potential Michigan stores has not been released by store officials.
The list of closures also includes traditional mall stores, including clothing retailer Rue21, which announced in May it would close all 543 of its stores as part of its Chapter 11 bankruptcy proceedings. That includes 19 of the casual women’s and men’s apparel chain’s stores in Michigan. Other stores that have closed in Michigan include three Rite Aid stores and two Express stores.
According to CoreSight, here are retail closures so far in 2024:
Consumer spending remains solid, rising 0.2 percent in April, according to the latest available government data. But confidence may be declining, according to the University of Michigan’s Surveys of Consumer sentiment. The consumer confidence dropped to 69.1 in May, down from 77.2 in April. Jeffrey Roach, LPL Financial’s chief economist, told CBS news that “uncertainty about the inflation path could suppress consumer spending in the coming months.” Also, Roach said in an earlier interview with CBS, consumers have mostly spent any federal pandemic stimulus money that may have temporarily bolstered their bank accounts. With those windfalls exhausted, consumers are likely to cut back on discretionary spending, he said. Some retailers made strategic errors, Saunders told CBS. For example, Express, an apparel store specializing in workplace attire, “made too little effort to adapt” when they began working from home during the pandemic, Saunders said in a research note. Express said it would close 100 of its 500 stores as part of its bankruptcy restructuring. UBS retail analysts led by Michael Lasser said in an April report by Retail Dive there’s too much retail space in the country, and third-party outlets such as Shein and Temu are expected to drive further online retail penetration, which is expected to increase to 26 percent from 21 percent.
Especially vulnerable are apparel and accessories, consumer electronics home furnishing retailers, according to the UBS analysts. The outlook isn’t entirely bleak for retailers. Although department stores are likely to continue to lose market share, off-price conglomerates such as TJK, whose banners include T.J. Maxx, could grab billions in sales from the closure of 150 underperforming Macy’s stores, according to analysts. The 100-page UBS analysis said brick-and-mortar stores are “an important part of the overall retail ecosystem.” “In the simplest terms, stores serve as hubs of fulfillment and support distribution logistics,” UBS said. “This is increasingly more important as consumers are becoming more demanding for convenience or immediate deliveries.” Walmart, Target, Costco, Home Depot and other large retailers that have invested in customer experiences across all channels are best positioned to survive “a biological evolution similar to survival of the fittest,” UBS said in the analysis.